Oh, hello. I'm Dr. . James Latin from the music department here at Juniata College with my 1950s era transistor radio and portable miniature record player that I could take to the beach with a stack of records and and play.And uh we're here today to talk about uh uh technical innovations capturing and disseminating popular music during the time of Juniata College. I do want to thank uh TEDex and Juniata for allowing me to speak today. We're going to take a brief look at what these technical innovations are ...

Financial Data and Key Metrics Changes - Revenue grew 11% year over year to $254 million, driven by strong demand across physical media, collectibles, and direct-to-consumer channels [5][13] - Adjusted EBITDA increased to $12.2 million from $3.4 million a year ago, a 259% improvement, with a margin of 4.8% [5][14] - Gross margin expanded 340 basis points to 14.6%, up from 11.2% in the prior year [5][14] - Net income rose to $4.9 million, or $0.10 per diluted share, compared to $0.4 million or $0.01 per share in the prior year [14] Business Line Data and Key Metrics Changes - The Handmade by Robots brand continues to scale rapidly, contributing to the collectibles strategy [6] - The collectibles segment is seeing exceptional sell-through and expanded retail placement [5] - Direct-to-consumer sales now contribute 37% of total net revenue, highlighting the growth in this channel [17] Market Data and Key Metrics Changes - The company reported a 59% year-over-year increase in physical movie sales in the first quarter, largely attributed to the Paramount licensing agreement [23] - Vinyl sales are experiencing strong demand, driven by new releases and reissues from popular artists [44] Company Strategy and Development Direction - The company is focused on expanding its exclusive content base and creating long-term value for shareholders [7] - Strategic M&A priorities remain active, with a focus on opportunities that extend licensing relationships and enhance e-commerce capabilities [25] - The company is advancing its AI-powered sales transformation to improve efficiency and lead prioritization [6][57] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining strong margin performance, citing operational investments and a dedicated team [66] - The company is optimistic about the holiday season, anticipating strong consumer demand across various product categories [59] Other Important Information - The company ended the quarter with $3.2 million in cash, inventory of $121.7 million, and debt of $66 million, reflecting improved financial flexibility [9] - A new five-year, $120 million senior secured revolving credit facility was established, reducing borrowing costs and enhancing liquidity [9] Q&A Session Summary Question: Could physical media outperform this holiday season? - Management noted strong sales across entertainment categories, with collectors excited about their collections [29] Question: How did Taylor Swift's album perform compared to her last? - Management indicated that while they fulfilled a lot for the album, it was not booked in the reported quarter, but overall demand for vinyl remains strong [30][31] Question: What are the thoughts on exclusive deals with other studios? - Management is actively pursuing new opportunities with various studios to maximize physical media sales [35] Question: Will Handmade by Robots have a significant impact in the near term? - Management expects Handmade by Robots to ramp up but does not anticipate a major financial impact until fiscal 2027 or 2028 [42] Question: What factors are driving vinyl sales? - Continuous consumer demand and new releases from popular artists are contributing to strong vinyl sales [44] Question: How significant is the Paramount licensing agreement? - The Paramount agreement has been a key driver of growth, with strong sales in collectible formats like Steelbook [48]

Financial Performance Highlights - Alliance Entertainment's EBITDA soared to $122 million in Q1 FY26, a 259% year-over-year increase from $34 million[11] - Net income increased significantly from $04 million to $49 million[41, 137] - Adjusted EBITDA increased from $34 million to $122 million, a 258% increase year-over-year[43, 134] - Gross Margin increased by 340 basis points to 146%[133] Revenue and Sales - Alliance Entertainment drives over $1 billion in annual revenue across diverse categories[22] - Revenue for the twelve months ended September 30, 2025, was $1088 million[25] - Q1 FY26 revenue increased to $254 million from $229 million in Q1 FY25[32] - Direct-to-consumer (DTC) contributes 37% of Alliance Entertainment's net revenue[58] Balance Sheet - Inventory rose from $1028 million to $1217 million, reflecting holiday build[30, 135] - The Revolving Credit Facility, Net balance improved from $88 million to $56 million year-over-year[135] Strategic Initiatives and Partnerships - Alliance Entertainment has signed an exclusive multi-year Home Video and Digital Rights License Agreement with The Horror Section Inc[11] - Alliance Entertainment is the Category Advisor for Walmart's video category[63] - Exclusive distribution and licensing agreements drive annual sales exceeding $365 million[68]

Core Insights - Long-term investing is accessible to anyone due to no-fee brokerages and fractional-share trading, but it requires time for investments to grow significantly [1] - Successful long-term investing is deliberate and planned, focusing on strategies that encompass key elements for success [2] Group 1: Investment Strategies - Diversification is essential for long-term investing, as it minimizes exposure to any single investment and reduces volatility [3] - The "buy and hold" strategy is recommended by renowned investors, emphasizing the importance of staying invested to benefit from compounding and capital appreciation [3] - Dollar-cost averaging is a strategy that helps investors manage contributions, maintain discipline, and ensure consistency over long investment horizons [4] Group 2: Market Dynamics - Market unpredictability is driven by numerous variables, making it difficult for even experienced investors to predict market movements consistently [6] - Missing key positive trading days can significantly impact returns; for instance, missing the 10 best days over the last 30 years would have halved returns, while missing the 30 best days would have reduced returns by 83% [6]

Financial Data and Key Metrics Changes - Net income for Q3 2025 totaled $31 million, up 28% year-over-year from $24 million in Q3 2024 and up from a net loss of $28 million in Q2 2025 [5][6] - Net interest income reached $127 million for Q3 2025, an increase of 8% from the prior quarter and up 21% from Q3 2024 [10] - Net interest margin expanded by 20 basis points to 2.89% for Q3 2025, marking the best linked quarter expansion since 2012 [7][10] Business Line Data and Key Metrics Changes - Loan growth was observed across all major segments: C&I, commercial real estate, and residential mortgage, with gross loans totaling $14.6 billion, up 1.2% quarter-over-quarter [6][8] - Non-interest income showed growth in service fees on deposit accounts, international banking fees, foreign exchange, and wire transfer fees [11] Market Data and Key Metrics Changes - Deposits totaled $15.8 billion as of September 30, 2025, reflecting a 1% decrease from $15.9 billion as of June 30, primarily due to a reduction in brokered deposits [8] - Non-interest-bearing deposits increased by 1% quarter-over-quarter to $3.5 billion [8] Company Strategy and Development Direction - The company is focused on strengthening its deposit franchise and deepening primary banking relationships while optimizing deposit mix and pricing [8] - The outlook for 2025 includes expectations for high single-digit loan growth and approximately 10% growth in net interest income [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive profitable growth and create long-term value for stockholders, supported by strategic additions to banking teams [16] - The company anticipates a fourth quarter effective tax rate of approximately 14%, excluding notable items [16] Other Important Information - The Board declared a quarterly common stock dividend of $0.14 per share, payable on November 21, 2025 [8] - The company reported a 57% reduction in net charge-offs, reflecting improved asset quality [7][13] Q&A Session Summary Question: Spot rate on deposits and average margin for September - The spot rates for total deposits and interest-bearing deposits were 2.82% and 3.62%, respectively, with the average margin for September at 2.96% [19][21] Question: Update on Territorial acquisition and cost savings - The company is focusing on stabilizing and expanding operations post-acquisition, with incremental cost savings being realized [22] Question: Purchase accounting impact for the quarter - Loan accretion from the acquisition was $5 million for the quarter [25][26] Question: Maturing CDs in Q4 - The company has $2.3 billion of CDs maturing in Q4 at an average rate of 4.08% [32][34] Question: Loan growth outlook and impact of rates - The company has a strong loan pipeline going into Q4 and expects to maintain loan growth despite potential rate decreases [52] Question: Competitive environment for deposits - The company has reduced CD pricing following the Fed funds cut and is optimistic about managing deposit costs effectively [54][55]

Financial Data and Key Metrics Changes - Net income for Q3 2025 totaled $31 million, up 28% year over year from $24 million in Q3 2024, and improved from a net loss of $28 million in Q2 2025 [6][7] - Net interest income reached $127 million, an increase of 8% from the prior quarter and up 21% from Q3 2024 [10] - Net interest margin expanded by 20 basis points to 2.89% for Q3 2025, marking the best linked quarter expansion since 2012 [7][10] Business Line Data and Key Metrics Changes - Loan growth was observed across all major segments: commercial and industrial loans, commercial real estate loans, and residential mortgage loans [7][9] - Gross loans totaled $14.6 billion, up 1.2% quarter over quarter, equivalent to 5% annualized growth [8][9] - Non-interest income showed quarter-over-quarter growth in service fees, international banking fees, and wire transfer fees [11] Market Data and Key Metrics Changes - Deposits totaled $15.8 billion, reflecting a 1% decrease from $15.9 billion as of June 30, primarily due to a reduction in brokered deposits [8] - Non-interest-bearing deposits increased to $3.5 billion, up 1% quarter over quarter [8] Company Strategy and Development Direction - The company is focused on strengthening its deposit franchise and deepening primary banking relationships while optimizing deposit costs [8][9] - Continued investments in talent are aimed at driving sustainable growth and enhancing corporate and commercial banking capabilities [9][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving high single-digit loan growth in 2025 and expects net interest income growth of approximately 10% [16] - The company anticipates non-interest income growth of approximately 30% for 2025, excluding notable items from the second quarter [16] Other Important Information - The board declared a quarterly common stock dividend of $0.14 per share, payable on November 21, 2025 [8] - The allowance for credit losses totaled $152.5 million at September 30, 2025, with a coverage ratio of 1.05% of loans receivable [14] Q&A Session Summary Question: Spot rate on deposits and average margin for September - The spot rate for total deposits was 2.82% and for interest-bearing deposits was 3.62%, with the average margin for September at 2.96% [20] Question: Update on Territorial Bancorp acquisition - Operations are being stabilized and expanded, with incremental cost savings being realized, but no significant updates reported this quarter [21] Question: Purchase accounting impact this quarter - Loan accretion for the quarter was $5 million, up from $4 million in the previous quarter [24][25] Question: Maturing CDs in the fourth quarter - There are $2.3 billion of maturing CDs at an average rate of 4.08% [31] Question: Expense side and hiring process - New team members are being added in strategic segments, with a focus on strengthening existing capabilities and optimistic growth prospects [39][41] Question: Impact of government shutdown on SBA loan sales - The SBA has suspended acceptance of new loan applications, but existing loans with approval numbers will proceed as usual [44][45] Question: Challenges with non-accrual loans in commercial real estate - Non-performing loans have been relatively flat, with ongoing efforts to resolve problem credits [46] Question: Loan growth outlook and impact of potential rate decreases - A strong loan pipeline is expected to support growth, with improvements in commercial and industrial loans [51]

Core Insights - The company reported a significant improvement in asset quality, with a 57% reduction in net charge-offs and a 17% decrease in criticized loans in the commercial and industrial (C&I) segment [1][10] - The net income for the third quarter of 2025 was $32 million, reflecting a 29% increase from the previous year, driven by loan growth across major segments and an expansion in net interest margin [2][3] - The company declared a quarterly common stock dividend of $0.14 per share, payable on November 21, 2025 [1] Financial Performance - Net interest income for the third quarter totaled $127 million, an 8% increase from the prior quarter and a 21% increase year-over-year [6] - The net interest margin expanded by 20 basis points to 2.89%, the best linked quarter expansion since 2012 [2][6] - Noninterest income growth is expected to be approximately 30% for 2025, excluding notable items from the second quarter [12] Loan and Deposit Growth - Total deposits as of September 30, 2025, were $15.8 billion, a slight decrease of 1% from the previous quarter, primarily due to a reduction in broker deposits [5] - Gross loans, including those held for sale, totaled $14.6 billion, reflecting a 1.2% quarter-over-quarter increase [5] - The criticized loan ratio improved to 2.56% of total loans, down from 2.87% in the previous quarter [10] Strategic Initiatives - The company has been investing in talent to support growth, particularly in corporate and commercial banking, which is expected to enhance revenue growth [6][13] - The acquisition of Territorial Bancorp has strengthened the deposit position and is expected to yield cost savings as operations stabilize [7][12] - The company anticipates high single-digit loan growth for the full year 2025, supported by a strong loan pipeline [12][30] Expense Management - Noninterest expenses totaled $97 million in the third quarter, with a notable increase attributed to higher compensation-related costs due to talent investments [8][9] - The efficiency ratio, excluding notable items, improved to 67.5% compared to 69.1% in the previous year [9]

Core Insights - Investors are facing declining yields on cash-equivalent investments as the Federal Reserve lowers interest rates, with current high-yield savings accounts yielding between 4.20% and 4.30% [1] - The NEOS Enhanced Income 1-3 Month T-Bill ETF (CSHI) offers a distribution rate of 5.12%, making it an attractive option for investors seeking better returns [2][4] Investment Landscape - CSHI, with $677.55 million in assets, is a well-timed ETF that has remained relevant since its launch in 2022, particularly as the Fed eases monetary policy [2] - There is over $7 trillion in cash-equivalent investments, with a significant portion expected to shift as interest rates decline, presenting an opportunity for CSHI [5][6] Strategy and Performance - CSHI enhances income from one- to three-month T-bills through a unique put-focused options strategy, which includes selling S&P 500 puts, thereby increasing its yield potential [7] - Maintaining a position in CSHI allows investors to capture attractive yields while keeping capital available for potential market dips [3][4]

Core Insights - LendInvest has issued 8.25% APY bonds, significantly higher than traditional savings accounts and CDs, amidst a backdrop of Federal Reserve rate cuts [1][4] - The minimum investment for retail bonds is £1,000 ($1,337), with increments of £100 thereafter, raising questions about the sustainability of such high yields [2][4] - The increase in LendInvest's bond interest rate from 5.25% APY in 2017 to 8.25% APY is attributed to a rise in the Bank of England's base rate from 0.25% to 4% [5][6] Investment Considerations - Retail bonds lack the safety net provided by bank accounts, as there is no guarantee of principal return if the issuer defaults [3] - Investors must assess the financial health of the issuer, as smaller companies carry higher bankruptcy risks compared to larger corporations [4] - The opportunity cost of investing in retail bonds is highlighted, as funds allocated to these bonds cannot be invested in potentially higher-yielding assets like index funds or growth stocks [6]

Market Trends - Teens and twenty-somethings are reviving CDs, flip phones, and digital cameras due to a feeling of losing control to screens [1]